Government schemes of FPOs

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Central Sector Scheme for Formation and Promotion of 10,000 FPOs

Objective: To form and promote 10,000 new FPOs across the country.

Support: Provides financial assistance of up to ₹18 lakh per FPO for a period of 5 years for initial handholding, training, and capacity building.

Implementing Agencies: Small Farmers’ Agribusiness Consortium (SFAC), National Cooperative Development Corporation (NCDC), National Bank for Agriculture and Rural Development (NABARD), and other entities.

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Equity Grant Scheme

Objective: To enhance the equity base of FPOs.

Support: Provides a matching equity grant of up to ₹15 lakh to FPOs to strengthen their financial base.

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Credit Guarantee Fund Scheme

Objective: To provide a credit guarantee to lending institutions providing loans to FPOs.

Support: Ensures up to 85% of the loan amount (up to ₹1 crore) taken by FPOs is covered under the guarantee.

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Venture Capital Assistance Scheme

Objective: To support FPOs in setting up agribusiness ventures.

Support: Provides financial assistance in the form of venture capital to meet the shortfall in the capital requirement for implementing viable projects.

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Formation and Promotion of Farmer Producer Organizations (FPOs) under NABARD

Objective: To promote and nurture FPOs, enabling them to scale up their operations.

Support: Offers capacity building, training, and a range of financial products to support FPOs in their operations.

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National Food Security Mission (NFSM) – FPO Promotion

Objective: To support the formation of FPOs in specific crops to increase productivity and ensure better market linkages.

Support:: Provides assistance for the formation of FPOs in select districts and crops.

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Mission for Integrated Development of Horticulture (MIDH) – FPO Promotion

Objective:To promote the formation of FPOs in the horticulture sector.

Support:Provides financial assistance for the formation and nurturing of FPOs involved in horticulture activities.

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Small Farmers Agribusiness Consortium (SFAC) Support

Objective: To assist FPOs in securing better prices for their products and improving market access.

Support:SFAC acts as a facilitator, helping FPOs with marketing, linkages, and aggregation of produce.

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NABARD’s PRODUCE Fund

Objective:To support the promotion and nurturing of FPOs across the country.

Support:Provides funds to Producer Organizations Promoting Institutions (POPIs) to help them create and support FPOs.

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National Cooperative Development Corporation (NCDC) Assistance

Objective: To support cooperative societies and FPOs in agribusiness activities.

Support:Provides financial support in the form of loans and grants for the establishment and strengthening of FPOs.

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Agri Infrastructure Fund (AIF)

Objective:To facilitate the creation of farm gate infrastructure for FPOs, including warehouses, cold storages, and processing units.

Support:Provides medium to long-term debt financing for investment in viable projects under agriculture infrastructure.

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Pradhan Mantri Krishi Sinchai Yojana (PMKSY) – FPO Support

Objective:To promote the formation of FPOs focused on water use efficiency and irrigation.

Support:Provides financial assistance for the formation of FPOs in water-stressed areas.